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SAIR
 Guest
0.10 Dollars($)
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Posted: Fri Jun 13, 2008 1:38 pm Post subject: 2nd mortg foreclosed while negotiatiing short sale |
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Hello all,
I have been negotiating a short sale with 2 lenders the 1st one is ready to give me an approval, I just call the 2nd and they are telling me that they forecloused yesterday. I asked who is in charge of the property they said that nobody that they closed and charge off the acct.
Can you please tell me what can i do next, i'm very confuse.
Thanks.
Sair _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant |
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larry

Joined: 27 Jun 2007
Posts: 3328
473.40 Dollars($)
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Posted: Sat Jun 14, 2008 12:17 am Post subject: |
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Hi SAIR.
Welcome to the forum.
The second lender has charged off the dent but that doesn't mean that he has forgiven the debt. You still need to pay the debt. So try to pay it. Otherwise it will have a negative effect on your credit. The lender can even sell it to the collection agencies.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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gmakerley
 Community Mentor

Joined: 09 Nov 2007
Posts: 893 Location: bloomfield, ct
66.20 Dollars($)
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Posted: Sat Jun 14, 2008 5:00 am Post subject: |
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Sair, it would appear you need to go further into the personnel of that second mortgage lender to find someone to speak with who knows how to answer your questions.
you can't sell the house without a release of the second lien, so it's imperative that you find out how to go about satisfying those people, if they'll be satisfied at all. of course, if they've charged off your loan, it appears they recognize the likelihood they'll never get their money back.
nevertheless, you need to speak with someone to ensure you'll be able to get a release for recording at the time of your sale.
keep pressing the issue - you need to do this. _________________ George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-221-5044 |
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cliff
 Community Experts

Joined: 05 May 2008
Posts: 283 Location: Houston
63.85 Dollars($)
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Posted: Sat Jun 14, 2008 1:45 pm Post subject: |
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Hi Sair,
George is right you need to press the issue with you second lender. If they have already given up on the debt that should work to you advantage in negotiating your short sale.
Get the agreed upon price from your first lender. Then you can sell the property after you agree to pay the second lender what you are able to from the proceeds of the sale of your home. Since second lender is writing off your loan they did not anticipate receiving payment on the loan. This should work to your benefit when you tell them that you will be able to pay them some of the money you owe them.
Like George said you need to speak with the right person in the short sale department and inform them that you are in the process of completing a short sale with your first lender. _________________ Cliff Pape
Market Analyst
www.home-buddies.com |
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Jessica
 Community Mentor

Joined: 08 Jun 2004
Posts: 673 Location: OHIO
117.39 Dollars($)
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Posted: Mon Jun 16, 2008 5:26 am Post subject: RE: second loan foreclosed - negoating short sale with first |
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Hi Sair,
I'm surprised that the second lender could foreclose the house without the first lender's objection. The second loan has a subordinate position compared to the first. So, obviously if the second forecloses, he should pay off the first loan. But I don't think the lender did so? isn't it?
Even if the second has declared foreclosure, there is still some time prior to the sale, during which you can talk to the lender and ask him as to whether he'll pay off the first; then call up the first and explain the entire situation.
Again, you've mentioned that the second lender has issued a charge-off. So, is it that they have declared foreclosure ands finding that you couldn't pay, they charged-off the account. Well, you need to talk to the right person in the second lender's company to find out what exactly is the scenario.
Regards,
Jessica _________________ Home buying made simple with Community booklet |
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